Chart of the Day: See how flexible workspace leases moved from Grade A to other office properties

It reflects the tightened vacancy rates in CBD premium and Grade A office market.

This chart from Colliers International showed that leases by flexible workspace operators’ decreased in proportion over 2016 to H1 2018, as compared to their transactions in Grade B and other office properties.

Flexible workspace lettings within CBD Premium and Grade A buildings made up 63% of all deals in 2016, by square footage.

“However, this fell sharply to just 33% of all deals in 2018, reflecting the tight availability of suitable floor plates in the CBD Premium and Grade A market at present,” the firm noted.

The firm believes that over 2018-2019, flexible workspace operators will likely increasingly target Grade B office properties as well as retail spaces, given the tight vacancy rate (5.5% as of Q2 2018) in the CBD Premium & Grade A office market.